Legal Question in Banking Law in India

Sarfaesi

Is it correct that the Bank has to discharge all tax liabilities before handing over the auction property to the bidder?

Whether the purchaser of the property have any obligation to pay any statutory dues n the property sold under SARFAESI


Asked on 12/23/08, 11:28 pm

4 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Sarfaesi

No its not compulsary.

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Answered on 12/24/08, 1:32 am
J. Radhakrishnan independent Practice

Re: Sarfaesi

Bank has no liability to clear statutory duties which have a first and prior charge on the secured property sold by it under the SARFAESI Act. It is for the auction purchaser to ensure that there are no prior charges on the property he purchases. If there are any, he will be liable to discharge the same. Else the property he purchases is vulnerable for being attached and sold for such dues by the statutory authorities. It is a case of 'caveat emptor'

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Answered on 12/25/08, 8:44 pm
Prof.Somnath Mukherjee s.mukherjee associates,09874053359

Re: Sarfaesi

No not at all.

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Answered on 12/28/08, 2:07 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Sarfaesi

The statutory dues ususally follow the property in whomsoever hands it may be.

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Answered on 12/27/08, 10:21 am


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